- Business NZ PMI edges down to 53.2 in January.
- US Dollar Index looks to post modest daily losses.
- Coming up: CPI and PPI figures from China.
After advancing to a fresh weekly high of 0.6856 in the early NA session, the NZD/USD pair started to consolidate its daily gains and edged slightly lower in the last hour. As of writing, the pair was trading at 0.6831, adding 0.53% on a daily basis.
Earlier today, the broad-based selling pressure surrounding the USD fueled the pair's upsurge. Disappointing retail sales data from the U.S. and a sharp drop witnessed in the Treasury bond yields weighed on the greenback and dragged the US Dollar Index back toward the 97 area. At the moment, the index is down 0.15% on the day at 97.05.
Meanwhile, Business NZ just recently reported that the manufacturing sector in New Zealand lost momentum in January with the headline PMI easing to 53.1 from 55.1 in December. "Looking at the main sub-index values, new orders (52.2) decreased its level of expansion for a third consecutive month, with the latest result the lowest since December 2017," BusinessNZ's executive director for manufacturing Catherine Beard said in the publication. "In addition, the proportion of positive comments for January (47.7%) was down considerably from December (60.6%) and November (60.1%)."
In the Asian session, Chinese inflation report will be looked upon for fresh impetus. Markets expected the annual CPI to stay unchanged at 1.9% in January. A softer-than-expected inflation growth could weigh on the antipodean currencies and make it difficult for the NZD/USD pair to carry its winning streak into the third day.
Technical levels to consider
NZD/USD
Overview:
Today Last Price: 0.6831
Today Daily change: 0.0036 pips
Today Daily change %: 0.53%
Today Daily Open: 0.6795
Trends:
Daily SMA20: 0.6806
Daily SMA50: 0.679
Daily SMA100: 0.6727
Daily SMA200: 0.6754
Levels:
Previous Daily High: 0.6853
Previous Daily Low: 0.6727
Previous Weekly High: 0.6907
Previous Weekly Low: 0.6729
Previous Monthly High: 0.694
Previous Monthly Low: 0.6516
Daily Fibonacci 38.2%: 0.6805
Daily Fibonacci 61.8%: 0.6775
Daily Pivot Point S1: 0.673
Daily Pivot Point S2: 0.6665
Daily Pivot Point S3: 0.6604
Daily Pivot Point R1: 0.6856
Daily Pivot Point R2: 0.6918
Daily Pivot Point R3: 0.6982
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